Uday Kotak led Kotak Mahindra Bank is exploring a potential takeover of rival private sector lender IndusInd Bank and promoters of the two lenders have held discussions for pursuing a merger via a share swap, reports Livemint.
Kotak Mahindra Bank commands a market capitalisation of Rs 2.75 trillion while IndusInd Bank has a market capitalisation of Rs 50,000 crore. The takeover of the latter by Kotak Mahindra Bank will help it boost the presence in the banking space, especially in the retail segment.
It should be noted though that the talks are so far exploratory in nature and no final decision has been taken as of yet.
Meanwhile, the promoter of IndusInd Bank, IndusInd International Holdings Ltd (IIHL) has completely denied the development as malicious, untrue and baseless. It has pressed that IIHL, promoted by the Hindujas and a broad base of NRIs reiterate their full support to the bank, "now and always".
The development comes at a time when the Hinduja family is mired in a family dispute. The dispute between the four brothers - Srichand, Gopichand, Prakash and Ashok - is being heard at a London court.
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